Q&A: I have a 590 credit score and need to raise it in order to get a refi on house,whats the fastest way to do it?
Question by Lars: I have a 590 credit score and need to raise it in order to get a refi on house,whats the fastest way to do it?
Need to refinance by May, otherwise my payments go up $ 500. Is there a chance I can refinance at a lower rate and whats the fastest, easiest way to boost a credit score?
Best answer:
Answer by GG
quickly pay off some existing debt
What do you think? Answer below!
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Filed under: Credit Scores
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All you can do is pay your debts on time, but even then, your score isn’t going that high in three months.
If you can’t afford the house, have you considered selling it?
Your credit score is low, but I have seen much worst!! More importantly is why ? Do you have mtge lates? etc. There are many misconceptions about what helps & hurts your credit score. The three credit agencies can offer you sound advice.
http://www.equifax.com/home/ or http://www.transunion.com
With that score you do have refi options right now, BUT they will be limited and the rates may not be something favorable from most lenders. There is several programs that offer excellant rates, but you need to fit the bill, even with your current score!
Looking into it can’t hurt. There are still some loan programs that are not soley based on credit score, but the your overall financial picture. They offer very competative rates
I have been in the mortage business for close to 10 yrs…in today’s economy poor credit is mostly frowned upon, but there is options that you can explore right now that can give you wise benefits, and long term savings….No gimicks or tricks. You have to meet the guidelines, but its doable under some circumstances. Feel free to email if you want some help with it. No obligations. I would be more than happy to share some of my experience.
Hi Lars …
I can tell you from personal experience that one of the fastest ways to boost your credit score is to pay down your debt. I have seen people with 700+ credit scores get turned down for loans because they are so high in personal debt. Here’s is what my mortgage guy had me do when I bought my house and it worked. I raised my score almost 20 points in 2 months, but I needed his help.
1.) Every credit card or loan that is over 50% of your limit is VERY hurtful to your score. For instance, if your limit is $ 1,000 and you balance is $ 501.00 or over you get dinged big time for that. I paid down a few credit cards that were above 50% of my limit and it helped a lot.
2.) Do NOT close any credit accounts no matter what. This hurts your debt to credit ratio as well and can make your debt look even worse believe it or not.
3.) Check your credit report and contact the company’s if there is any false or out dated info there. If it turns out to be true they must remove it by law which will also raise your score.
4.) Do not charge anything new or open any new accounts until your refi is over. That will hurt you big time. Every time you get an inquiry on your credit it lowers your credit score as well … even if it’s for a good reason.
Every time I made a positive change to my credit score my mortgage guy would fax the credit bureaus and ask them to bring my credit up to date. If you wait for them to do it, it could take 30+ days … if it’s a positive change and a mortgage guy is contacting them they are much more likely to make the change more quickly.
A good mortgage guy can help you with this easily. Just be sure you find a GOOD one and not one who will rip you off in the end. They are on your side because they get a commission if they get the loan so a good one will go out of his way to help you with your credit in any way possible. Ask them for help … you’ll be surprised at what they can do!
Best of luck to you!
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If your in the state of Texas your credit score doesnt matter. If youre in Texas I can help you, http://www.aomortgage.net